Grant Overpayments

Up to 16,000 self-employed people have been paid too much in grant overpayments, according to HMRC. Around 0.6% of the grants paid out through SEISS include an overpayment.

How Many Grant Overpayments?

As about 2.7 million grants have been issued so far, that suggests just over 16,000 claimants may have been overpaid.

Those who’ve been overpaid are now receiving letters from HMRC about the error. HMRC says that anyone who’s been overpaid WON’T be expected to pay anything back, as it doesn’t want to cause “unnecessary hardship” to those it’s trying to support. So, there’s no action you need to take at this point.

But if you have received a letter telling you your first grant was larger than it should have been, it’s important to understand when you apply for the second grant that the calculation will be adjusted to ensure you receive the correct amount – so you may end up receiving less than you were expecting. HMRC says that no deductions for overpayment will be made from the second grant though – you’ll simply receive what you should.

It’s also worth noting that both SEISS grants are taxable, so you will need to pay tax on the overpaid amount when you file your self-assessment tax return for 2020/21 (though this would always have been the case).

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